3 days ago
9
Dragons and Cardiff have signed the Welsh Rugby Union's (WRU) new Professional Rugby Agreement (PRA25).
The two regions have finally agreed the five-year deal after initially shaking hands on the proposal back in February.
But Ospreys and Scarlets have yet to agree to the new plan - despite the 8 May deadline set by the WRU - as Welsh rugby threatens to fracture between east and west.
Those two west Wales regions have stalled on signing the new agreement because of concerns of the implications of the WRU's takeover of Cardiff last month.
The deal includes increased and fixed funding of up to £6.5m - compared to the current £4.5m - from next season.
The WRU said they welcome the "decisiveness" of Cardiff and Dragons.
"I'm absolutely delighted to confirm the new PRA25 is now agreed for Cardiff Rugby and Dragons RFC," said WRU CEO Abi Tierney.
"The PRA25 will provide a stable platform to enable sustained success on the field for Cardiff and Dragons and will significantly support the overall progress of the professional game in Wales."
BBC Sport Wales has learned that with no agreement yet reached with Scarlets or Ospreys, a funding split is possible with Welsh rugby in a two plus two scenario where the clubs in the east receive £6.5m but the two regions in the west remain on the previous terms of £4.5m.
The WRU had told Scarlets, Ospreys and Dragons that they were at risk of a two-year notice period being imposed if they did not meet the latest deadline.
The WRU wrote to the three teams after a meeting with them on Tuesday, with the future of professional rugby in Wales facing major change should the deal be left unsigned.
Prior to news of Dragons and Cardiff signing the deal, the Ospreys Supporters Club stated that the three professional clubs were "awaiting a response from the WRU on some key issues", adding that negotiations were ongoing.
The Scarlets Supporters Trust also stated that discussions were continuing on Friday afternoon, stating their "extreme disappointment" amid reports of the deadline set by the WRU.
The proposed agreement was meant to form a key component of the WRU's long-term plan, which it has called the 'One Wales' strategy.
BBC Sport Wales learned that if the three independent regions failed to sign, the WRU would consider options that could lead to lasting structural changes in Welsh professional rugby.
One possible outcome could have seen the number of Welsh professional teams reduced, despite chief executive Abi Tierney repeatedly expressing her commitment to retaining all four regions.
The WRU holds the licences for the Welsh sides competing in the United Rugby Championship (URC) and European competitions.
The union has the authority to revoke those licences after serving a two-year notice period, though they would be heavily penalised financially if they did not continue to provide four sides for the respective competitions.
The independent clubs had voiced concerns that, under the proposed agreement, there would be no clear limit on the level of investment the WRU could allocate to Cardiff, potentially placing the other teams at a financial disadvantage.
The WRU's acquisition of the business and assets of Cardiff cost £780,000, with the national governing body also committed to putting about £1.2m into the capital-city region until June 2026, meaning a total outlay of about £2m.
